Replies to post #1418 on Zeev's Turnips Talk Politics (ZTTP)

[Koikaze]

I'm not sure I understand the rationale behind your proposal. In what way would your suggestion inhibit the growth of corporate monstrosities?

Fred

[jbennett53]

redwards, That sounds like such a great idea. I wonder how the first buyer of a new Cadillac would react when handed a total sales tax bill of over $10,000? My guess is he might say, "Keep your Caddy"? My point is one basically is forced to pay income tax but a sales tax is imposed on the buyer by the buyer. If just 10% delayed purchases how would that affect an already fragile economy?

[Zeev Hed]

Come on my friend, that is he most regressive tax feasible. How much of his income does Bill Gates spend on buying "taxable items"? How much does a middle income family? You'll transfer the load of taxes to those that can least afford it. If I or Bill Gates buy stock or other properties, will you tax each buying transaction? You'll say no (since if you say yes, you killed the equities market". So where does it applies? Real estate, bonds, collectible, art? If a company buys a thousand tons of steel, do they pay 15% on it? Does it apply only to retail, maybe all intermediary buying and selling should be taxed as well. If not, how do you differentiate? You just create another quagmire bureaucracy to administer that one.

Zeev